Stephan Nolte

The effect of EU derogation strategies on the compliance costs of the nitrate directive

Within the framework of the nitrate directive, member states have the opportunity to apply for derogation, i.e. increasing fertilisation standards under certain conditions. Several EU regions have utilised this opportunity, but each in a different way, resulting in six very different derogation policies within the EU in 2009. This paper focuses on the differences between the policies applied and makes an assessment with regard to the impact of these differences on the application rate for derogation, the manure surplus and the cost of allocating manure. Based on the MP-MAS model described by Van der Straeten et al. (2010) the different scenarios are applied on a single case area (Flanders) and the economic effects have been simulated. Results show considerable differences between the policy alternatives, leading to the conclusion that member states not only have to focus on whether or not to allow derogation, but also on the actual details of the derogation policy. Granting derogation at parcel level (plot of land), instead of farm level, increases the potential effect of derogation; the level of increase in fertilisation standards under derogation determines the application rate for derogation: a higher increase leads to a higher application rate.

Sweet and Sour Changes in Trade Regimes

Sugar is an important export for a number of developing countries, especially in the African, Caribbean and Pacific regions. In many of these countries, preferential access to the EU market has been a key factor to develop their sugar sectors. The recent and proposed changes to the international sugar trade regimes, particularly in the EU, are threatening this preferential access. We study the possible implications of such changes on ACP countries’ sugar production and exports by using a spatial price equilibrium model specifically developed for the sugar market. The results suggest that the effects of these changes are likely to vary according to the prevailing level of world sugar market price and according to whether ACP countries are current exporters to the EU.